Over the past few years, I had developed and employed a stock selection strategy based on three criterion. These included screening for valuation, using a set of criteria such as minimum yields, dividend payout ratios and dividend growth. After I had a manageable list of stocks to focus on, I would do an analysis of company fundamentals for quality, while assessing the likelihood of future earnings growth.
The more time I spent running my screen and analyzing companies in detail, the more I realized that there was a partial disconnect between the two. I was more of an intuitive investor, who focused on dividend growth and yield, but could not really explain well why I had preference on one company over another in the pre-screened stock list.